HK/China Equity Long-Short

Osbert Tang, CFA

Osbert Tang is an equity analyst with over 20 years of experience with focuses on China transport, infrastructure, industrials and utilities sectors. He has been based in Shanghai since 2003, accumulated nearly 20 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities. 

Osbert has received votes from top-tier institutional investors and has been a highly-ranked transport and infrastructure analyst in the Asiamoney, Institutional Investors and Greenwich surveys. In addition to his extensive experience with international investment banks including RBS, ABN AMRO (both served as Shanghai Chief Representative), Paribas Asia Equity, Maybank Kim Eng and DBS Securities, he has been a senior analyst with Moody’s Investors Service with focus on ratings of China infrastructure and related LGFV issuers. He has also worked in the area of strategic development at Sun Hung Kai Properties Limited. 

Osbert holds a BBA from the Chinese University of Hong Kong, an MBA from the University of Texas at Austin and a MSSc in Applied Psychology from the City University of Hong Kong. He was accredited with the CFA charter in 1997, and is a member of both British Psychological Society and Hong Kong Psychological Society.

Sinotrans (598 HK): Record FY21, Takeaways from Post-Result Call

Sinotrans (598 HK): Another Very Promising Quarter

Sinotrans (598 HK): How Much Value Can Be Unlocked from Its First REIT?

Sinotrans (598 HK): Quick Take on the Good Underlying 4Q20 and Positive Profit Alert for 1Q21

Sinotrans (598 HK): Good 1Q21, Outlook Stays Very Decent

Sinotrans (598 HK): Positive Profit Alert for 1H21

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a> posted another set of strong result in 3Q21 with recurring earnings grew by 34.2% YoY. The slow growth of 5.8% in reported earnings is distorted by an Rmb143m provision in litigation loss, and investors should not let this non-recurring figure mask the interpretation of good result. We saw healthy double-digit volume growth for logistics and e-commerce businesses in the quarter, and international express JV DHL-Sinotrans continued to stage a solid growth in profit contribution.</p><p>We believe Sinotrans is deeply undervalued at 0.47x 12-month forward P/B given an 11.7% ROE and a 41% earnings growth for FY21F. The 21% pullback in share price along with the container shipping sector in a month's time looks unjustified, in our view. Sinotrans has a solid financial position with 3Q21 gearing of just 6.6%, and assume a stable dividend payout, it is sitting on an attractive dividend yield of 7.4% for this year.  </p>

Sinotrans (598 HK) posted another set of strong result in 3Q21 with recurring earnings grew by 34.2% YoY. The slow growth of 5.8% in reported earnings is distorted by an Rmb143m provision in litigation loss, and investors should not let this non-recurring figure mask the interpretation of good result. We saw healthy double-digit volume growth for logistics and e-commerce businesses in the quarter, and international express JV DHL-Sinotrans continued to stage a solid growth in profit contribution.We believe Sinotrans is deeply undervalued at 0.47x 12-month forward P/B given an 11.7% ROE and a 41% earnings growth for FY21F. The 21% pullback in share price along with the container shipping sector in a month's time looks unjustified, in our view. Sinotrans has a solid financial position with 3Q21 gearing of just 6.6%, and assume a stable dividend payout, it is sitting on an attractive dividend yield of 7.4% for this year.  

Sinotrans (598 HK): From Strength to Strength